TDK to slash 11,000 jobs world-wide as profits slump

TDK has announced a drastic cost-cutting programme that will see the company slash around 12 per cent of its workforce across the world following plunging income.

In the company's most recent report, TDK executives admitted that its income hasn't exactly hit targets - and has dropped 74 per cent in the last six months.

To counteract this shortfall, the company has announced that it will sell its OLED - Organic Light-Emitting Diode - business unit for a quick cash injection, and will slash jobs for longer term savings.

The job cuts will cover around 11,000 jobs in total - 12 per cent of the company's global workforce - as it misses its earnings forecast by a country mile.

TDK originally forecast a ¥50 billion profit for the current fiscal year, but the earnings shortfall has combined with a strengthening Yen and the floods in Thailand hitting the company's hard drive customers means it will finish the year closer to ¥20 billion.

While a profit is a profit, that's one impressive shortfall. Investors appear confident that the OLED division sale and job cuts will help get the company back on track: despite the poor showing on its most recent report, the company's stock on the Tokyo Stock Exchange closed just 1.2 per cent down at the end of trading.